SRC-AMY C.S.H.B. 3242 78(R)    BILL ANALYSIS


Senate Research CenterC.S.H.B. 3242
78R13331 MTB-FBy: Pitts (Estes)
State Affairs
5-20-2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

A reverse auction is an online bidding procedure that can last as short as
an hour or as long as two weeks.  The auction takes place at a previously
scheduled time and Internet location. Multiple suppliers access the
website to bid on projects, with the ability to see what others have bid
and offer lower amounts.  C.S.H.B. 3242 requires the Texas Building and
Procurement Commission to use reverse auctions for 10 percent of open
market purchases, other than purchases of professional services.  This
bill also requires a state agency to submit a written justification in
September of each year if the agency does not use the reverse auction
procedure. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2155.062(d), Government Code, to provide that
the definition of "reverse auction procedure" applies for the subchapter,
rather than the section. 

SECTION 2.  Amends Subchapter B, Chapter 2155, Government Code, by adding
Section 2155.085, as follows: 

Sec. 2155.085.  REVERSE AUCTION PROCEDURE.  (a)  Requires at least 10
percent of the dollar value of open market purchases, other than purchases
of professional services as defined by Section 2254.002 (Definitions),
made by a state agency or by the Texas Building and Procurement Commision
(TBPC) on behalf of a state agency each state fiscal year to be purchased
using the reverse auction procedure. 

(b)  Requires a state agency, in September of each year, to submit to
certain elected leaders a written justification if the agency did not
comply with Subsection (a) during the preceding state fiscal year. 

SECTION 3.  Effective date:  September 1, 2003.